Last updated: May 3rd, 2017 at 09:55 pm
DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The pullback correction that I talked about yesterday is now underway as the DAX has fallen back towards the breakout support at 11,895.
This now means that the initial support band 11,795/11,895 is important.
11,795 was the low of the day of the big breakout and a retracement back below would be a disappointment for the bulls.
The daily momentum indicators are just consolidating now as they react to the bear candle from yesterday, but no significant negative signals as yet.
The hourly chart shows the RSI unwinding back towards the low 30s again which has been a level used during similar corrective moves on 6th and 17th Feb.
A decisive move below 30 on hourly RSI would be a concern for the bulls.
If the support starts to build around 11,850/11,895 which is towards the bottom of a recent trend channel, this should therefore prove to be another chance to buy.
At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.